Office of Public Sector Information
PART 6 continued CHAPTER 9 continued
(1) The Treasury may by order make such provision amending any reference in sections 757 to 766 to, or to a provision of,—
(a) the Directive, or
(b) any instrument referred to in those sections by virtue of an order made under this section,
as appears to them appropriate for the purpose of giving effect to any Council Directive adopted after 8th April 2004 amending or replacing the Directive.
(2) This includes a power to make provision amending any such reference as it applies to section 101 of FA 2004 (payment of royalties without deduction of tax) as a result of subsection (9) of that section.
(1) No liability to income tax arises under Chapter 8 of Part 5 (income not otherwise charged) in respect of income arising from the commercial occupation of woodlands in the United Kingdom.
(2) For this purpose the occupation of woodlands is commercial if the woodlands are managed—
(a) on a commercial basis, and
(b) with a view to the realisation of profits.
(1) No liability to income tax arises in respect of a payment if it is made—
(a) under an enactment relating to the giving of financial assistance for the provision, maintenance or improvement of housing accommodation or other residential accommodation, and
(b) by way of grant or other contribution towards expenses.
(2) It does not matter whether—
(a) the payment is made to the person who incurs the expenses, or
(b) the expenses have been, or are to be, incurred.
(3) Subsection (1) does not apply so far as the payment is made towards an expense which is deductible in calculating income for any income or corporation tax purpose.
(1) This section applies if—
(a) shares are awarded to a participant under an approved share incentive plan, and
(b) the condition in section 392(3) or (5) is met at the time the shares in question are so awarded (earnings within ITEPA 2003).
This is subject to subsection (4).
(2) No liability to income tax arises for the participant in respect of—
(a) the amount applied by the trustees in acquiring dividend shares on behalf of the participant, or
(b) any amount retained under paragraph 68(2) of Schedule 2 to ITEPA 2003 (amount of cash dividend not reinvested).
(3) Subsection (2) does not affect any liability arising as a result of—
(a) the retained amount later being paid out (see sections 393 and 406), or
(b) the dividend shares ceasing to be subject to the plan (see sections 394 and 407).
(4) This section does not apply if the main purpose or one of the main purposes of the arrangements under which the shares are awarded or acquired is the avoidance of tax or national insurance contributions.
(5) This section forms part of the SIP code (see section 488 of ITEPA 2003: approved share incentive plans).
(6) Accordingly, expressions used in this section and contained in the index in paragraph 100 of Schedule 2 to that Act (approved share incentive plans) have the meaning indicated by that index.
(7) In particular—
(a) for the meaning of “dividend shares” see paragraph 62(3)(b) of that Schedule,
(b) for the meaning of “participant” see paragraph 5(4) of that Schedule, and
(c) for the meaning of “the trustees” see paragraphs 2(2) and 71(1) of that Schedule.
(1) No liability to income tax arises in respect of relevant foreign income of a consular officer or employee in the United Kingdom for a foreign state if—
(a) Her Majesty by Order in Council directs that this section applies to the foreign state for the purpose of giving effect to a reciprocal arrangement with that state, and
(b) the officer or employee meets conditions A to C.
(2) Condition A is that the officer or employee is not—
(a) a British citizen,
(b) a British overseas territories citizen,
(c) a British National (Overseas), or
(d) a British Overseas citizen.
(3) Condition B is that the officer or employee is not engaged in any trade, profession, vocation or employment in the United Kingdom, otherwise than as a consular officer or employee of the state in question.
(4) Condition C is that the officer or employee—
(a) is a permanent employee of that state, or
(b) was not ordinarily UK resident immediately before becoming a consular officer or employee in the United Kingdom of that state.
(5) In this section and section 772—
“consular officer or employee” includes any person employed for the purposes of the official business of a consular officer at—
any consulate,
any consular establishment, or
any other premises used for those purposes, and
“reciprocal arrangement” means a consular convention or other arrangement with a foreign state, making similar provision to that made by this section and sections 302, 646A and 681A of ITEPA 2003 in the case of Her Majesty’s consular officers or employees in that state.
(1) An Order in Council under section 771 may limit the operation of that section in relation to a state in any way appearing to Her Majesty appropriate having regard to the reciprocal arrangement with the state.
(2) An Order under that section may be made so as to have effect from a date earlier than that on which it is made, but not earlier than the reciprocal arrangement in question comes into force.
(3) An Order under that section may contain such transitional provisions as appear to Her Majesty appropriate.
(4) A statutory instrument containing an Order under that section is subject to annulment in pursuance of a resolution of the House of Commons.
(1) No liability to income tax arises for a non-UK resident in respect of income from a security issued by the Inter-American Development Bank if the liability only arises because one or more of circumstances A to C apply.
(2) Circumstance A is that the security is issued in the United Kingdom or in sterling.
(3) Circumstance B is that the income is made payable or paid in the United Kingdom or in sterling.
(4) Circumstance C is that the Bank maintains an office or other place of business in the United Kingdom.
(1) No liability to income tax arises for a non-UK resident in respect of income from a security issued by an organisation if—
(a) the organisation has been designated by the Treasury for the purposes of this section, and
(b) the liability only arises because one or more of circumstances A to C apply.
(2) Circumstance A is that the security is issued in the United Kingdom or in sterling.
(3) Circumstance B is that the income is made payable or paid in the United Kingdom or in sterling.
(4) Circumstance C is that the organisation maintains an office or other place of business in the United Kingdom.
(5) The Treasury may by order designate for the purposes of this section—
(a) any of the Communities,
(b) the European Investment Bank,
(c) any international organisation that meets conditions A and B.
(6) Condition A is that one of its members is the United Kingdom or any of the Communities.
(7) Condition B is that the agreement under which that member became a member provides for the same kind of exemption from tax for income from securities issued by the organisation as this section provides.
(1) This section applies if property is held on trust in accordance with directions which are valid and effective under section 9 of the Superannuation and other Trust Funds (Validation) Act 1927 (c. 41) (validation of trust funds for the reduction of the national debt).
(2) No liability to income tax arises in respect of any of the following—
(a) income arising from the property,
(b) income arising from the accumulation of that income, and
(c) profits of any description otherwise accruing to the property and liable to be accumulated under the trust.
(1) No liability to income tax arises in respect of income from a scholarship held by an individual in full-time education at a university, college, school or other educational establishment.
(2) This exemption is subject to section 215 of ITEPA 2003 (under which only the scholarship holder is entitled to the exemption if the scholarship is provided by reason of another person’s employment).
(3) In this section “scholarship” includes a bursary, exhibition or other similar educational endowment.
No liability to income tax arises in respect of a sum paid by way of supplement under section 79 of VATA 1994 (VAT repayment supplements).
No liability to income tax arises in respect of anything received by way of incentive under any regulations made in accordance with Schedule 38 to FA 2000 (regulations for providing incentives for electronic communications).
(1) No liability to income tax arises as a result of Chapter 8 of Part 5 (income not otherwise charged) in respect of a gain arising to a person in the course of dealing in—
(a) commodity or financial futures,
(b) traded options, or
(c) financial options.
(2) The reference in subsection (1) to a gain arising in the course of dealing in commodity or financial futures includes a gain regarded as so arising under section 143(3) of TCGA 1992 (gains arising from transactions otherwise than in the course of dealing on a recognised futures exchange, involving authorised persons).
(3) In this section—
“commodity or financial futures” means commodity futures or financial futures that are for the time being dealt in on a recognised futures exchange,
“financial option” has the meaning given by section 144(8)(c) of TCGA 1992, and
“traded option” has the meaning given by section 144(8)(b) of that Act.
(1) No liability to income tax arises in respect of a disabled person’s vehicle maintenance grant.
(2) For this purpose a “disabled person’s vehicle maintenance grant” means a grant to any person owning a vehicle that is made under—
(a) paragraph 2 of Schedule 2 to the National Health Service Act 1977 (c. 49),
(b) section 46(3) of the National Health Service (Scotland) Act 1978 (c. 29), or
(c) Article 30 of the Health and Personal Social Services (Northern Ireland) Order 1972 (S.I. 1972/1265 (N.I. 14)).
(1) No liability to income tax arises in respect of a payment that is made—
(a) by way of training grant under the “New Deal 50plus” scheme, and
(b) to a person as a participant in that scheme.
(2) For this purpose the “New Deal 50plus” scheme means —
(a) the scheme under section 2(2) of the Employment and Training Act 1973 (c. 50) known as “New Deal 50plus”, or
(b) the corresponding scheme under section 1 of the Employment and Training Act (Northern Ireland) 1950 (c. 29 (N.I.)).
(1) No liability to income tax arises in respect of a payment that is made to a person as a participant in an employment zone programme.
(2) For this purpose an “employment zone programme” means an employment zone programme established for an area or areas designated under section 60 of the Welfare Reform and Pensions Act 1999 (c. 30).
(1) Amounts of income which are exempt from income tax as a result of this Part (whether because the type of income concerned is exempt from every charge to income tax or because it is exempt from every charge that is relevant to those particular amounts) are accordingly to be ignored for all other income tax purposes.
(2) An exception to this is that interest on deposits in ordinary accounts with the National Savings Bank which is exempt under this Part from every charge to income tax is not to be ignored for the purpose of providing information.
(3) This express exception to subsection (1) is without prejudice to the existence of any other implied or express exception to that subsection (whether in connection with the provision of information or otherwise).
Income Tax (Trading and Other Income) Act 2005